Section 163 to be invoked only in case of Lack of enquiry and not in case of inadequate enquiry by AO

Whether provisions of Section 263 of the Income Tax Act, 1961 can be invoked only in the cases of lack of enquiry by the Assessing Officer and not in the case of inadequate enquiry by the Assessing Officer?

Held: Yes

Brief Facts

The ld. AO raised the queries, during the assessment proceedings, on all the points on which objection had been raised by ld. CIT in the notice u/s 263 of the Act and replies were also submitted by the assessee.

Held

It was held that this is not a case of lack of enquiry by the ld. AO or lack of application of mind by the ld. AO. Merely because the ld. AO has reached to a different conclusion and ld. CIT has different conclusion, the assessment order cannot be said to be erroneous and prejudicial to the interest of Revenue. Therefore, revisionary power u/s 263 of the Act cannot be invoked by ld. CIT. Reliance was placed on the Judgement by the Hon’ble Allahabad High Court in CIT vs. Krishna Capbox (P.) Ltd. [2015] 372 ITR 310 (All.).

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